C.R.S. Section 38-33.3-312
Conveyance or encumbrance of common elements

(1)

In a condominium or planned community, portions of the common elements may be conveyed or subjected to a security interest by the association if persons entitled to cast at least sixty-seven percent of the votes in the association, including sixty-seven percent of the votes allocated to units not owned by a declarant, or any larger percentage the declaration specifies, agree to that action; except that all owners of units to which any limited common element is allocated must agree in order to convey that limited common element or subject it to a security interest. The declaration may specify a smaller percentage only if all of the units are restricted exclusively to nonresidential uses. Proceeds of the sale are an asset of the association.

(2)

Part of a cooperative may be conveyed and all or part of a cooperative may be subjected to a security interest by the association if persons entitled to cast at least sixty-seven percent of the votes in the association, including sixty-seven percent of the votes allocated to units not owned by a declarant, or any larger percentage the declaration specifies, agree to that action; except that, if fewer than all of the units or limited common elements are to be conveyed or subjected to a security interest, then all unit owners of those units, or the units to which those limited common elements are allocated, must agree in order to convey those units or limited common elements or subject them to a security interest. The declaration may specify a smaller percentage only if all of the units are restricted exclusively to nonresidential uses. Proceeds of the sale are an asset of the association. Any purported conveyance or other voluntary transfer of an entire cooperative, unless made in compliance with section 38-33.3-218, is void.

(3)

An agreement to convey, or subject to a security interest, common elements in a condominium or planned community, or, in a cooperative, an agreement to convey, or subject to a security interest, any part of a cooperative, must be evidenced by the execution of an agreement, in the same manner as a deed, by the association. The agreement must specify a date after which the agreement will be void unless approved by the requisite percentage of owners. Any grant, conveyance, or deed executed by the association must be recorded in every county in which a portion of the common interest community is situated and is effective only upon recordation.

(4)

The association, on behalf of the unit owners, may contract to convey an interest in a common interest community pursuant to subsection (1) of this section, but the contract is not enforceable against the association until approved pursuant to subsections (1) and (2) of this section and executed and ratified pursuant to subsection (3) of this section. Thereafter, the association has all powers necessary and appropriate to effect the conveyance or encumbrance, including the power to execute deeds or other instruments.

(5)

Unless in compliance with this section, any purported conveyance, encumbrance, judicial sale, or other transfer of common elements or any other part of a cooperative is void.

(6)

A conveyance or encumbrance of common elements pursuant to this section shall not deprive any unit of its rights of ingress and egress of the unit and support of the unit.

(7)

Unless the declaration otherwise provides, a conveyance or encumbrance of common elements pursuant to this section does not affect the priority or validity of preexisting encumbrances.

(8)

In a cooperative, the association may acquire, hold, encumber, or convey a proprietary lease without complying with this section.

Source: Section 38-33.3-312 — Conveyance or encumbrance of common elements, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-38.­pdf (accessed Oct. 20, 2023).

38‑33.3‑101
Short title 38‑33.3‑102
Legislative declaration 38‑33.3‑103
Definitions 38‑33.3‑104
Variation by agreement 38‑33.3‑105
Separate titles and taxation 38‑33.3‑106
Applicability of local ordinances, regulations, and building codes 38‑33.3‑106.5
Prohibitions contrary to public policy - patriotic, political, or religious expression - public rights-of-way - fire prevention - renewable energy generation devices - affordable housing - drought prevention measures - child care - definitions 38‑33.3‑106.7
Unreasonable restrictions on energy efficiency measures - definitions 38‑33.3‑106.8
Unreasonable restrictions on electric vehicle charging systems and electric vehicle parking - legislative declaration - definitions 38‑33.3‑107
Eminent domain 38‑33.3‑108
Supplemental general principles of law applicable 38‑33.3‑109
Construction against implicit repeal 38‑33.3‑110
Uniformity of application and construction 38‑33.3‑111
Severability 38‑33.3‑112
Unconscionable agreement or term of contract 38‑33.3‑113
Obligation of good faith 38‑33.3‑114
Remedies to be liberally administered 38‑33.3‑115
Applicability to new common interest communities 38‑33.3‑116
Exception for new small cooperatives and small and limited expense planned communities 38‑33.3‑116.3
Large planned communities - exemption from certain requirements 38‑33.3‑117
Applicability to preexisting common interest communities 38‑33.3‑118
Procedure to elect treatment under the “Colorado Common Interest Ownership Act” 38‑33.3‑119
Exception for small preexisting cooperatives and planned communities 38‑33.3‑120
Amendments to preexisting governing instruments 38‑33.3‑120.5
Extension of declaration term 38‑33.3‑121
Applicability to nonresidential planned communities 38‑33.3‑122
Applicability to out-of-state common interest communities 38‑33.3‑123
Enforcement - limitation 38‑33.3‑124
Legislative declaration - alternative dispute resolution encouraged - policy statement required 38‑33.3‑201
Creation of common interest communities 38‑33.3‑202
Unit boundaries 38‑33.3‑203
Construction and validity of declaration and bylaws 38‑33.3‑204
Description of units 38‑33.3‑205
Contents of declaration 38‑33.3‑206
Leasehold common interest communities 38‑33.3‑207
Allocation of allocated interests 38‑33.3‑208
Limited common elements 38‑33.3‑209
Plats and maps 38‑33.3‑209.4
Public disclosures required - identity of association - agent - manager - contact information 38‑33.3‑209.5
Responsible governance policies - due process for imposition of fines - procedure for collection of delinquent accounts - enforcement through small claims court - definitions 38‑33.3‑209.6
Executive board member education 38‑33.3‑209.7
Owner education 38‑33.3‑210
Exercise of development rights 38‑33.3‑211
Alterations of units 38‑33.3‑212
Relocation of boundaries between adjoining units 38‑33.3‑213
Subdivision of units 38‑33.3‑214
Easement for encroachments 38‑33.3‑215
Use for sales purposes 38‑33.3‑216
Easement rights 38‑33.3‑217
Amendment of declaration 38‑33.3‑218
Termination of common interest community 38‑33.3‑219
Rights of secured lenders 38‑33.3‑220
Master associations 38‑33.3‑221
Merger or consolidation of common interest communities 38‑33.3‑221.5
Withdrawal from merged common interest community 38‑33.3‑222
Addition of unspecified real estate 38‑33.3‑301
Organization of unit owners’ association 38‑33.3‑302
Powers of unit owners’ association 38‑33.3‑302.5
Unit owners’ access to common elements - duties of association - unreasonable restrictions and prohibitions prohibited - notice of restriction or prohibition required 38‑33.3‑303
Executive board members and officers - powers and duties - reserve funds - reserve study - audit 38‑33.3‑303.5
Construction defect actions - disclosure - approval by unit owners - definitions - exemptions 38‑33.3‑304
Transfer of special declarant rights 38‑33.3‑305
Termination of contracts and leases of declarant 38‑33.3‑306
Bylaws 38‑33.3‑307
Upkeep of the common interest community 38‑33.3‑308
Meetings 38‑33.3‑309
Quorums 38‑33.3‑310
Voting - proxies 38‑33.3‑310.5
Executive board - conflicts of interest - definitions 38‑33.3‑311
Tort and contract liability 38‑33.3‑312
Conveyance or encumbrance of common elements 38‑33.3‑313
Insurance 38‑33.3‑314
Surplus funds 38‑33.3‑315
Assessments for common expenses 38‑33.3‑316
Lien for assessments - liens for fines, fees, charges, costs, and attorney fees - limitations 38‑33.3‑316.3
Collections - limitations - violations 38‑33.3‑316.5
Time share estate - foreclosure - definitions 38‑33.3‑317
Association records - rules - applicability 38‑33.3‑318
Association as trustee 38‑33.3‑319
Other applicable statutes 38‑33.3‑401
Registration - annual fees
Green check means up to date. Up to date

Current through Fall 2024

§ 38-33.3-312’s source at colorado​.gov